Prices Continue to Rise
The Quinte real estate market is continuing its pace and is rolling into 2017 with average home prices up 18.4%. It is a seller’s market, as listing inventory remains low and new buyers are entering the marketplace in strong numbers. However, the list-to-sale ratio has come down under 50%. This means that the market is adjusting to the seasonal cycle and is becoming more balanced.
January unit sales are up to 144 for the entire Quinte board. Belleville and Prince Edward County were especially busy with unit sales up 11.4% and 21.1% over January ‘16, respectively.
There’s nothing out there to buy!
The most dramatic change in the market over the past 12 months has been the number of listings for sale. The Quinte board saw a 24% decrease in active listings compared to January ‘16 (down to 736 from 969). For Belleville, Quinte West and The County that’s 29%, 20% and 24% respectively. Consequently, multiple offer scenarios have become increasingly common.
Cause & Effect
The significant decrease in listings combined with new buyers entering the market place (first-time buyers, non-local buyers, immigrants, etc.) has caused an unusual average price increase that far outpaces normal appreciation. External factors causing this effect include low interest rates with the expectation that they will rise, a weak Loonie and uncertainty over the United States economy.
Average property values in the Quinte area remain far below the average prices in other sections of the province such as Kingston, Ottawa and the GTA. The influx of non-local buyers is expected to continue as long as the more urban markets continue to expand.
*Statistical information presented here is based on data from the monthly residential (single family homes) activity report issued by the Quinte & District Association of Realtors®
View market updates from previous months.